| When the bottom fell out of the real estate | | | | When you start your search for your home, you |
| market, many people felt they would not be able | | | | should do some research. You should find out |
| to realize their dream to buy their first home. | | | | what the current interest rates are, what the |
| Others needed more space and were looking for | | | | average monthly payment is for the amount of |
| a second home. During the economic downfall of | | | | loan you are seeking, and most important, what |
| the market, many people had their homes | | | | you can afford to pay monthly. |
| foreclosed. Some areas of the country were | | | | Think about the type of home you want and look |
| more depressed than others. | | | | at the selling price. You also want to look at your |
| The real estate market is rebounding. There are | | | | budget to determine how much you can afford |
| programs to help first and second home buyers. | | | | as a monthly payment. You should budget about |
| Research programs on the Internet and also | | | | 25% of your monthly income as a mortgage. |
| check with your local realtors. Although interest | | | | There are lenders who will tell you that you can |
| rates and home prices may be lower, you still | | | | afford more. Do not fall into the trap of |
| need to shop for the best deal you can get. | | | | overextending yourself. Stick to your budget. |
| If you are planning to buy a house, you need to | | | | Review at your credit report before you fill out |
| start saving your money and have enough for a | | | | an application. Check for any errors and get them |
| down payment and closing costs. The down | | | | corrected. Errors on your credit report can mean |
| payment is usually 15% of the price or the value | | | | an increased rate of interest on your mortgage |
| of the house, whichever is lower. You should try | | | | loan. If you have any other credit problems, you |
| to have 20% as a down payment. With down | | | | should try to get them resolved before you |
| payments lower than 20%, you may have to buy | | | | make an application for a loan. Low credit scores |
| private mortgage insurance which is added to | | | | can be the cause for denial of a loan. |
| your monthly payment. | | | | When you are ready to buy, work out a realistic |
| Closing costs normally run around 5% of the | | | | budget that includes your mortgage payment, |
| property price. You should always get an estimate | | | | utilities, homeowners insurance, property taxes, |
| before you purchase the home. The estimate will | | | | and maintenance on your home. Buying a home is |
| be close to what you have to pay. It will not be | | | | a huge responsibility. |
| exact. But, it will give you an idea of how much | | | | Even in tough economic times if you plan carefully, |
| money you need to have when you sign the | | | | you can make the real estate market work for |
| papers for your home. In some cases, the seller | | | | you. Take your time and you will find the home |
| may help with closing costs. | | | | that fits your needs at a price you can afford. |